Navios Maritime Partners L.P. (“Navios Partners” or the “Company”)
(NYSE:NMM), an international owner and operator of container and
dry bulk vessels, today reported its financial results for the
first quarter ended March 31, 2017.
Angeliki Frangou, Chairman and Chief Executive
Officer of Navios Partners stated, “For the first quarter of 2017,
Navios Partners reported revenue of $42.4 million and adjusted
EBITDA of $25.9 million. We are pleased with these results as we
are coming off the worst year in history for the dry bulk market -
with the BDI reaching a historical low in the first quarter of 2016
and the container sector suffering its own set of challenges.”
Angeliki Frangou continued, “Through balance
sheet discipline and rigorous cost management, Navios Partners has
weathered the storm. And, by innovative transactions, Navios
Partners is positioned to thrive in a recovering market. During the
first quarter of 2017, we refinanced debt, so that Navios Partners
has no debt maturing for over three years. Navios Partners also
raised $100.0 million in equity and has acquired five drybulk
vessels which are expected to provide reasonable levered returns.
Finally, Navios Partners took advantage of a unique opportunity by
raising $75.0 million for Navios Maritime Containers Inc. (“Navios
Containers”), a growth vehicle dedicated to containers. Navios
Partners will benefit from any recovery in the container sector
through its 40% equity in Navios Containers.”
Navios Maritime Containers
Inc.
In April 2017, Navios Partners agreed to acquire
the entire container fleet (the “Fleet”) of Rickmers Maritime Trust
Pte. (the “Trust”). The Fleet consists of 14 Container vessels. The
acquisition of the first five 4,250 TEU vessels is expected in May
2017. These vessels are employed on charters that have staggered
expirations in 2018 and early 2019 at a net daily charter rate of
$26,850.
On May 11, 2017, Navios Partners formed Navios
Containers, a Marshall Islands company, which agreed with investors
to sell approximately 15.0 million of its shares for aggregate
gross proceeds of approximately $75.0 million, at a subscription
price of $5.00 per share.
Navios Containers intends to use the proceeds to
acquire the Fleet that Navios Partners previously agreed to
purchase from the Trust as well as for further vessel acquisitions,
working capital and general corporate purposes. The offering is
expected to close on or about June 1, 2017.
Navios Partners will invest $30.0 million and
receive 40% of the equity, and Navios Maritime Holdings Inc.
(“Navios Holdings”) will invest $5.0 million and receive 6.67% of
the equity of Navios Containers. Each of Navios Partners and Navios
Holdings will also receive warrants, with a five-year term, for
6.8% and 1.7% of the equity, respectively.
The Fleet vessels are expected to be delivered
starting in May, 2017. The acquisition is subject to a number of
conditions, and no assurance can be provided that the acquisition
will close at all or in part. Navios Containers also announced
today that it intends to file an application to register on the
Norwegian Over-The-Counter market (N-OTC). Navios Containers
expects to be registered on or about June 1, 2017.
Debt Refinancing
On March 14, 2017, Navios Partners completed the
issuance of a new $405.0 million Term Loan B facility. The Term
Loan B facility bears an interest rate of LIBOR plus 500 basis
points (“bps”) and has a three and a half year term with 5.0%
amortization profile. Navios Partners used the net proceeds of the
Term Loan B facility to: (i) to refinance the existing Term Loan B;
and (ii) to pay fees and expenses related to the term loans.
In March 2017, Navios Partners agreed to
refinance $32.0 million of its existing credit facility with DVB
Bank S.E. Based on the refinanced terms, the credit facility will
mature in August 2020 and will bear interest at a rate of LIBOR
plus 310 bps.
Acquisition of Vessels
In April 2017, Navios Partners agreed to acquire
two 2007 South Korean-built Panamax vessels of approximately 75,000
dwt each, for a total purchase price of $27.0 million. The vessels
are expected to be delivered to Navios Partners' owned fleet by
July 2017.
In April 2017, Navios Partners agreed to acquire
one 2010-built Capesize vessel of 178,132 dwt, for a purchase price
of $27.5 million. The vessel is expected to be delivered to Navios
Partners' owned fleet by September 2017.
In May 2017, Navios Partners agreed to acquire
one 2009 Japanese-built Capesize vessel of 180,274 dwt, for a
purchase price of $28.3 million. The vessel is expected to be
delivered to Navios Partners' owned fleet by August 2017.
In May 2017, Navios Partners agreed to acquire
one 2011 South Korean-built Capesize vessel of 179,016 dwt, for a
purchase price of $31.05 million. The vessel is expected to be
delivered to Navios Partners' owned fleet by June 2017.
Acquisition of Other Assets
On March 17, 2017, Navios Holdings transferred
to Navios Partners its participation in Navios Revolving Loans and
Navios Term Loans, both relating to Navios Europe I, for $4.1
million in cash and 13,076,923 newly issued common units of Navios
Partners.
Completion of Sale of the Navios
Apollon
In April 2017, the Company completed the sale of
the Navios Apollon, a 2000 Ultra-Handymax vessel of 52,073 dwt. The
vessel was sold to an unrelated third party for a total net sale
price of $4.8 million.
Long-Term Cash Flow
Navios Partners has entered into medium to
long-term time charter-out agreements for its vessels with a
remaining average term of 2.6 years. Navios Partners has currently
contracted out 79.2% of its available days for 2017, 33.8% for 2018
and 17.3% for 2019, including index-linked charters, respectively,
expecting to generate revenues of approximately $134.1 million,
$83.2 million and $54.7 million, respectively. The average expected
daily charter-out rate for the fleet is $17,244, $25,746 and
$24,972 for 2017, 2018 and 2019, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected
financial data presented herein, Navios Partners has compiled
consolidated statements of operations for the three month periods
ended March 31, 2017 and 2016. The quarterly 2017 and 2016
information was derived from the unaudited condensed consolidated
financial statements for the respective periods. EBITDA, Adjusted
EBITDA, Adjusted Earnings per Common Unit, Adjusted Net Income and
Operating Surplus are non-GAAP financial measures and should not be
used in isolation or substitution for Navios Partners’ results.
|
Three Month |
|
Three Month |
|
Period Ended |
|
Period Ended |
|
March 31,2017 |
|
March 31,2016 |
(in $‘000
except per unit data) |
(unaudited) |
|
(unaudited) |
Revenue |
$ |
42,411 |
|
|
$ |
45,641 |
|
Net (loss)/ income |
$ |
(5,655) |
|
|
$ |
209 |
|
Adjusted Net
income |
$ |
720(1) |
|
|
$ |
209 |
|
EBITDA |
$ |
22,654 |
|
|
$ |
28,070 |
|
Adjusted EBITDA |
$ |
25,873(2) |
|
|
$ |
28,070 |
|
Earnings per Common
unit (basic and diluted) |
$ |
(0.06) |
|
|
$ |
— |
|
Adjusted Earnings
per Common unit (basic and diluted) |
$ |
0.01(1) |
|
|
$ |
— |
|
Operating Surplus |
$ |
17,566 |
|
|
$ |
18,283 |
|
Maintenance and
Replacement Capital expenditure reserve |
$ |
3,265 |
|
|
$ |
2,975 |
|
|
(1) Adjusted Net Income and Adjusted Earnings per Common unit
for the three months ended March 31, 2017 have been adjusted
to exclude a $3.2 million write-off of deferred finance fees
and discount related to the refinancing of the Term Loan B
Facility, $1.5 million allowance for doubtful accounts, $1.3
million loss related to the disposal of one of our vessels and $0.5
million equity compensation expense. |
|
(2) Adjusted EBITDA for the three months ended March 31,
2017 has been adjusted to exclude a $1.5
million allowance for doubtful accounts, $1.3 million loss
related to the disposal of one of our vessels and $0.5 million
equity compensation expense. |
|
Three month periods ended March 31, 2017 and
2016
Time charter and voyage revenues for the three
month period ended March 31, 2017 decreased by
$3.2 million or 7.1% to $42.4 million, as compared to
$45.6 million for the same period in 2016. The decrease was
mainly attributable to the decrease in TCE to $14,671 per day for
the three month period ended March 31, 2017, from $15,524 per
day for the three month period ended March 31, 2016, due to
the sale of the MSC Cristina in January 2017. As a result of the
vessel’s sale, available days of the fleet decreased to
2,794 days for the three month period ended March 31,
2017, as compared to 2,821 days for the three month period
ended March 31, 2016.
EBITDA for the three months ended March 31, 2017 was negatively
affected by the accounting effect of a: (i) $1.5 million allowance
for doubtful accounts; (ii) $1.3 million loss related to the
disposal of the MSC Cristina and; (iii) $0.5 million equity
compensation expense. Excluding these items, Adjusted EBITDA
decreased by $2.2 million to $25.9 million for the three months
ended March 31, 2017, as compared to $28.1 million for the same
period in 2016. The decrease in Adjusted EBITDA was primarily due
to a $3.2 million decrease in revenue and $0.3 million increase in
general and administrative expenses. The above decrease was
partially mitigated by a: (i) $0.4 million decrease in time charter
and voyage expenses; (ii) $0.4 million decrease in management fees
due to the sale of the MSC Cristina in January 2017; (iii) $0.4
million decrease in other expenses; and (iv) $0.1 million increase
in other income.
The reserve for estimated maintenance and
replacement capital expenditures for the three month periods ended
March 31, 2017 and 2016 were $3.3 million and $3.0 million,
respectively (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Navios Partners generated an operating surplus
for the three month period ended March 31, 2017 of
$17.6 million, compared to $18.3 million for the three
month period ended March 31, 2016. Operating Surplus is a
non-GAAP financial measure used by certain investors to assist in
evaluating a partnership’s ability to make quarterly cash
distributions (please see Reconciliation of Non-GAAP Financial
Measures in Exhibit 3).
Net income for the three months ended
March 31, 2017 was negatively affected by the accounting
effect of a: (i) $3.2 million write-off of deferred finance fees
and discount related to the refinancing of the Term Loan B
Facility; (ii) $1.5 million allowance for doubtful accounts;
(iii) $1.3 million loss related to the disposal of the MSC
Cristina; and (iv) $0.5 million equity compensation expense.
Excluding these items, Adjusted net income for the three months
ended March 31, 2017 amounted to $0.7 million compared to
$0.2 million for the three months ended March 31, 2016.
The increase in Adjusted net income of $0.5 million was due to a:
(i) $2.0 million decrease in depreciation and amortization expense;
(ii) $0.5 million decrease in interest expense and finance cost,
net; and (iii) $0.5 million increase in interest income. The above
increase was partially mitigated by a $2.2 million decrease in
adjusted EBITDA and $0.2 million increase in direct vessel
expenses, comprising of the amortization of dry dock and special
survey costs.
Fleet Employment Profile
The following table reflects certain key
indicators of Navios Partners’ core fleet performance for the three
months ended March 31, 2017 and 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Period
Ended March 31, 2017 (unaudited) |
|
|
Three Month Period
Ended March 31, 2016 (unaudited) |
|
|
|
Available Days(1) |
|
|
2,794 |
|
|
|
|
2,821 |
|
|
|
|
Operating Days(2) |
|
|
2,790 |
|
|
|
|
2,820 |
|
|
|
|
Fleet
Utilization(3) |
|
|
99.83 |
% |
|
|
|
99.96 |
% |
|
|
|
Time Charter Equivalent
(per day) (4) |
|
$ |
14,671 |
|
|
|
$ |
15,524 |
|
|
|
|
Vessels operating at
period end |
|
|
31 |
|
|
|
|
31 |
|
|
|
|
(1)
Available days for the fleet represent total calendar days the
vessels were in Navios Partners’ possession for the relevant period
after subtracting off-hire days associated with scheduled repairs,
dry dockings or special surveys. The shipping industry uses
available days to measure the number of days in a relevant period
during which a vessel is capable of generating revenues. |
|
(2)
Operating days is the number of available days in the relevant
period less the aggregate number of days that the vessels are
off-hire due to any reason, including unforeseen circumstances. The
shipping industry uses operating days to measure the aggregate
number of days in a relevant period during which vessels actually
generate revenues. |
|
(3)
Fleet utilization is the percentage of time that Navios Partners’
vessels were available for revenue generating available days, and
is determined by dividing the number of operating days during a
relevant period by the number of available days during that period.
The shipping industry uses fleet utilization to measure efficiency
in finding employment for vessels and minimizing the amount of days
that its vessels are off-hire for reasons other than scheduled
repairs, drydockings or special surveys. |
|
(4)
TCE rate: Time Charter Equivalent rate per day is defined as voyage
and time charter revenues less voyage expenses during a period
divided by the number of available days during the period. The TCE
rate per day is a standard shipping industry performance measure
used primarily to present the actual daily earnings generated by
vessels on various types of charter contracts for the number of
available days of the fleet. |
Conference Call Details:
Navios Partners' management will host a
conference call today, Monday, May 22, 2017 to discuss the results
for the first quarter ended March 31, 2017.
Call Date/Time: Monday, May 22, 2017 at 8:30 am ET Call Title:
Navios Partners Q1 2017 Financial Results Conference Call US Dial
In: +1.866.394.0817 International Dial In:
+1.706.679.9759Conference ID: 2091 0008
The conference call replay will be available two
hours after the live call and remain available for one week at the
following numbers:
US Replay Dial In: +1.800.585.8367 International Replay
Dial In: +1.404.537.3406 Conference ID: 2091 0008
Slides and audio webcast:
There will also be a live webcast of the
conference call, through the Navios Partners website
(www.navios-mlp.com) under “Investors”.
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
A supplemental slide presentation will be
available on the Navios Partners’ website under the "Investors"
section by 8:00 am ET on the day of the call.
About Navios Maritime Partners
L.P.
Navios Partners (NYSE:NMM) is a publicly traded
master limited partnership which owns and operates container and
dry bulk vessels. For more information, please visit our website at
www.navios-mlp.com.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events including Navios
Partners’ 2017 cash flow generation, future contracted revenues,
future distributions and its ability to have a dividend going
forward, opportunities to reinvest cash accretively in a fleet
renewal program or otherwise, potential capital gains, our ability
to take advantage of dislocation in the market and Navios Partners’
growth strategy and measures to implement such strategy; including
expected vessel acquisitions and entering into further time
charters. Words such as “may”, “expects”, “intends”, “plans”,
“believes”, “anticipates”, “hopes”, “estimates”, and variations of
such words and similar expressions are intended to identify
forward-looking statements. Such statements include comments
regarding expected revenue and time charters.
These forward-looking statements are based on
the information available to, and the expectations and assumptions
deemed reasonable by Navios Partners at the time these statements
were made. Although Navios Partners believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown
risks and are based upon a number of assumptions and estimates
which are inherently subject to significant uncertainties and
contingencies, many of which are beyond the control of Navios
Partners. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Factors that
could cause actual results to differ materially include, but are
not limited to, uncertainty relating to global trade, including
prices of seaborne commodities and continuing issues related to
seaborne volume and ton miles, our continued ability to enter into
long-term time charters, our ability to maximize the use of our
vessels, expected demand in the dry cargo shipping sector in
general and the demand for our Panamax, Capesize, Ultra-Handymax
and Container vessels in particular, fluctuations in charter rates
for dry cargo carriers and container vessels, the aging of our
fleet and resultant increases in operations costs, the loss of any
customer or charter or vessel, the financial condition of our
customers, changes in the availability and costs of funding due to
conditions in the bank market, capital markets and other factors,
increases in costs and expenses, including but not limited
to: crew wages, insurance, provisions, port expenses, lube oil,
bunkers, repairs, maintenance and general and
administrative expenses, the expected cost of,
and our ability to comply with, governmental
regulations and maritime self-regulatory organization standards, as
well as standard regulations imposed by our charterers applicable
to our business, general domestic and international political
conditions, competitive factors in the market in which Navios
Partners operates; risks associated with operations outside the
United States; and other factors listed from time to time in Navios
Partners’ filings with the Securities and Exchange Commission,
including its Form 20-Fs and Form 6-Ks. Navios Partners
expressly disclaims any obligations or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in Navios Partners’
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based. Navios
Partners makes no prediction or statement about the performance of
its common units.
EXHIBIT 1 |
|
NAVIOS MARITIME PARTNERS L.P. SELECTED BALANCE
SHEET DATA(Expressed in thousands of U.S. Dollars except
unit data) |
|
|
March 31,2017(unaudited) |
December 31,2016(unaudited) |
ASSETS |
|
|
Cash and cash
equivalents, including restricted cash |
$ |
117,949 |
$ |
25,088 |
Other current
assets |
|
36,674 |
|
31,261 |
Vessels, net |
|
1,023,602 |
|
1,037,206 |
Vessel held for
sale |
|
— |
|
125,000 |
Other non-current
assets |
|
90,013 |
|
31,073 |
Intangible assets |
|
15,781 |
|
18,952 |
Total
assets |
$ |
1,284,019 |
$ |
1,268,580 |
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
Other current
liabilities |
$ |
29,235 |
$ |
24,919 |
Current portion of
long-term debt, net |
|
22,009 |
|
74,031 |
Long-term debt,
net |
|
402,476 |
|
449,745 |
Other non-current
liabilities |
|
25,586 |
|
39,676 |
Total partners’
capital |
|
804,713 |
|
680,209 |
Total
liabilities and partners’ capital |
$ |
1,284,019 |
$ |
1,268,580 |
|
|
|
NAVIOS MARITIME PARTNERS
L.P. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Expressed in thousands of U.S. Dollars
except unit and per unit data) |
|
|
Three MonthPeriod
EndedMarch 31,2017(unaudited)
|
Three MonthPeriod
EndedMarch 31,2016(unaudited)
|
|
Time
charter and voyage revenues |
$ |
42,411 |
|
$ |
45,641 |
|
|
Time
charter and voyage expenses |
|
(1,413 |
) |
|
(1,849 |
) |
|
Direct
vessel expenses |
|
(1,702 |
) |
|
(1,464 |
) |
|
Management
fees (entirely through related parties transactions) |
|
(14,343 |
) |
|
(14,719 |
) |
|
General and
administrative expenses |
|
(3,212 |
) |
|
(2,488 |
) |
|
Depreciation and amortization |
|
(16,775 |
) |
|
(18,805 |
) |
|
Interest
expense and finance cost, net |
|
(10,355 |
) |
|
(7,664 |
) |
|
Interest
income |
|
523 |
|
|
72 |
|
|
Other
income |
|
3,120 |
|
|
3,054 |
|
|
Other
expense |
|
(3,909 |
) |
|
(1,569 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/ income |
$ |
(5,655 |
) |
$ |
209 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
unit: |
|
|
|
|
Three MonthPeriod
EndedMarch 31,2017(unaudited)
|
Three MonthPeriod
EndedMarch 31,2016(unaudited)
|
Earnings
per unit: |
|
|
Common unit
(basic and diluted) |
$ (0.06) |
$ |
— |
NAVIOS MARITIME PARTNERS
L.P.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Expressed in thousands of U.S. Dollars) |
|
|
Three MonthPeriod
EndedMarch 31,2017(unaudited)
|
Three MonthPeriod
EndedMarch 31,2016(unaudited)
|
OPERATING
ACTIVITIES: |
|
|
Net cash (used
in)/ provided by operating activities |
|
(1,737 |
) |
|
23,531 |
|
INVESTING
ACTIVITIES: |
|
|
Net cash proceeds from
sale of vessels |
|
107,250 |
|
|
— |
|
Repayments of notes
receivable |
|
1,172 |
|
|
— |
|
Loans receivable from
affiliates |
|
(6,327 |
) |
|
(450 |
) |
Note receivable from
affiliates |
|
(4,050 |
) |
|
— |
|
Net cash
provided by/ (used in) investing activities |
|
98,045 |
|
|
(450 |
) |
FINANCING
ACTIVITIES: |
|
|
Net proceeds from
issuance of general partner units |
|
2,626 |
|
|
— |
|
Proceeds from issuance
of common units, net of offering costs |
|
98,207 |
|
|
— |
|
Common units issuance
cost for Navios Europe I loans |
|
(561 |
) |
|
Proceeds from long-term
debt |
|
391,100 |
|
|
— |
|
Net decrease in
restricted cash |
|
985 |
|
|
5,326 |
|
Repayment of long-term
debt and payment of principal |
|
(489,942 |
) |
|
(21,780 |
) |
Deferred financing
cost |
|
(4,434 |
) |
|
— |
|
Net cash used
in financing activities |
|
(2,019 |
) |
|
(16,454 |
) |
Increase in
cash and cash equivalents |
|
94,289 |
|
|
6,627 |
|
Cash and cash
equivalents, beginning of period |
|
17,360 |
|
|
26,750 |
|
Cash and cash
equivalents, end of period |
$ |
111,649 |
|
$ |
33,377 |
|
|
|
|
|
|
|
|
|
EXHIBIT 2 |
|
|
|
Owned Drybulk Vessels |
|
Type |
|
Built |
|
Capacity (DWT) |
|
Navios Apollon(1) |
|
Ultra-Handymax |
|
2000 |
|
52,073 |
|
Navios Soleil |
|
Ultra-Handymax |
|
2009 |
|
57,337 |
|
Navios La Paix |
|
Ultra-Handymax |
|
2014 |
|
61,485 |
|
Navios Gemini S |
|
Panamax |
|
1994 |
|
68,636 |
|
Navios Libra II |
|
Panamax |
|
1995 |
|
70,136 |
|
Navios Felicity |
|
Panamax |
|
1997 |
|
73,867 |
|
Navios Galaxy I |
|
Panamax |
|
2001 |
|
74,195 |
|
Navios Hyperion |
|
Panamax |
|
2004 |
|
75,707 |
|
Navios Alegria |
|
Panamax |
|
2004 |
|
76,466 |
|
Navios Orbiter |
|
Panamax |
|
2004 |
|
76,602 |
|
Navios Helios |
|
Panamax |
|
2005 |
|
77,075 |
|
Navios Hope |
|
Panamax |
|
2005 |
|
75,397 |
|
Navios Sun |
|
Panamax |
|
2005 |
|
76,619 |
|
Navios Sagittarius |
|
Panamax |
|
2006 |
|
75,756 |
|
Navios Harmony |
|
Panamax |
|
2006 |
|
82,790 |
|
Navios Fantastiks |
|
Capesize |
|
2005 |
|
180,265 |
|
Navios Aurora II |
|
Capesize |
|
2009 |
|
169,031 |
|
Navios Pollux |
|
Capesize |
|
2009 |
|
180,727 |
|
Navios Fulvia |
|
Capesize |
|
2010 |
|
179,263 |
|
Navios Melodia |
|
Capesize |
|
2010 |
|
179,132 |
|
Navios Luz |
|
Capesize |
|
2010 |
|
179,144 |
|
Navios Buena
Ventura |
|
Capesize |
|
2010 |
|
179,259 |
|
Navios Joy |
|
Capesize |
|
2013 |
|
181,389 |
|
Navios Beaufiks |
|
Capesize |
|
2004 |
|
180,310 |
|
|
|
(1) The vessel was sold on April 21, 2017. |
|
Vessels to be delivered |
|
Type |
|
Built |
|
|
Capacity(DWT) |
|
|
|
Delivery Date |
|
Navios TBN I |
|
Panamax |
|
2007 |
|
|
75,511 |
|
|
|
Q3
2017 |
|
Navios TBN II |
|
Panamax |
|
2007 |
|
|
75,527 |
|
|
|
Q3
2017 |
|
Navios TBN III |
|
Capesize |
|
2010 |
|
|
178,132 |
|
|
|
Q3
2017 |
|
Navios TBN IV |
|
Capesize |
|
2009 |
|
|
180,274 |
|
|
|
Q3
2017 |
|
Navios TBN V |
|
Capesize |
|
2011 |
|
|
179,016 |
|
|
|
Q2
2017 |
|
Owned Container Vessels |
|
Type |
|
Built |
|
|
Capacity(TEU) |
|
|
Hyundai Hongkong |
|
Container |
|
2006 |
|
|
6,800 |
|
|
Hyundai Singapore |
|
Container |
|
2006 |
|
|
6,800 |
|
|
Hyundai Tokyo |
|
Container |
|
2006 |
|
|
6,800 |
|
|
Hyundai Shanghai |
|
Container |
|
2006 |
|
|
6,800 |
|
|
Hyundai Busan |
|
Container |
|
2006 |
|
|
6,800 |
|
|
YM Utmost |
|
Container |
|
2006 |
|
|
8,204 |
|
|
YM Unity |
|
Container |
|
2006 |
|
|
8,204 |
|
|
EXHIBIT 3
Disclosure of Non-GAAP Financial
Measures
1. EBITDA and Adjusted
EBITDA
EBITDA represents net income before interest and
finance costs, before depreciation and amortization (including
intangible accelerated amortization) and income taxes. Adjusted
EBITDA represents EBITDA before equity compensation expense, loss
on sale of vessel and allowance for doubtful accounts. We use
Adjusted EBITDA as a liquidity measure and reconcile EBITDA and
Adjusted EBITDA to net cash provided by/ (used in) operating
activities, the most comparable U.S. GAAP liquidity measure. EBITDA
in this document is calculated as follows: net cash provided
by/(used in) operating activities adding back, when applicable and
as the case may be, the effect of (i) net increase/(decrease)
in operating assets, (ii) net (increase)/decrease in operating
liabilities, (iii) net interest cost, (iv) amortization
and write-off of deferred finance charges and other related
expenses, (v) allowance for doubtful accounts,
(vi) equity in earnings of affiliates, (vii) payments for
drydock and special survey costs, (viii) gain/(loss) on sale
of assets/subsidiaries, (ix) impairment charges, (x) non
cash accrued interest income and amortization of deferred revenue,
(xi) gain/(loss) on debt repayments and (xii) equity
compensation expense. Navios Partners believes that EBITDA and
Adjusted EBITDA are each the basis upon which liquidity can be
assessed and presents useful information to investors regarding
Navios Partners’ ability to service and/or incur indebtedness, pay
capital expenditures, meet working capital requirements and make
cash distributions. Navios Partners also believes that EBITDA and
Adjusted EBITDA are used: (i) by potential lenders to evaluate
potential transactions; (ii) to evaluate and price potential
acquisition candidates; and (iii) by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry.
Adjusted EBITDA represents EBITDA excluding
certain items, as described under “Earnings Highlights.”
EBITDA and Adjusted EBITDA have limitations as
an analytical tool, and should not be considered in isolation or as
a substitute for the analysis of Navios Partners’ results as
reported under U.S. GAAP. Some of these limitations are:
(i) EBITDA and Adjusted EBITDA do not reflect changes in, or
cash requirements for, working capital needs; and
(ii) although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized may have to be
replaced in the future. EBITDA and Adjusted EBITDA do not reflect
any cash requirements for such capital expenditures. Because of
these limitations, EBITDA and Adjusted EBITDA should not be
considered as a principal indicator of Navios Partners’
performance. Furthermore, our calculation of EBITDA and Adjusted
EBITDA may not be comparable to that reported by other companies
due to differences in methods of calculation.
2. Operating Surplus
Operating Surplus represents net income adjusted
for depreciation and amortization expense, non-cash interest
expense, estimated maintenance and replacement capital expenditures
and one-off items. Maintenance and replacement capital expenditures
are those capital expenditures required to maintain over the long
term the operating capacity of, or the revenue generated by, Navios
Partners’ capital assets.
Operating Surplus is a quantitative measure used
in the publicly-traded partnership investment community to assist
in evaluating a partnership’s ability to make quarterly cash
distributions. Operating Surplus is not required by accounting
principles generally accepted in the United States and should not
be considered a substitute for net income, cash flow from operating
activities and other operations or cash flow statement data
prepared in accordance with accounting principles generally
accepted in the United States or as a measure of profitability or
liquidity.
3. Available Cash
Available Cash generally means for each fiscal
quarter, all cash on hand at the end of the quarter:
- less the amount of cash reserves established by the Board of
Directors to:- provide for the proper conduct of Navios
Partners’ business (including reserve for maintenance and
replacement capital expenditures);- comply with applicable
law, any of Navios Partners’ debt instruments, or other agreements;
or - provide funds for distributions to the unitholders
and to the general partner for any one or more of the next four
quarters;
- plus all cash on hand on the date of determination of available
cash for the quarter resulting from working capital borrowings made
after the end of the quarter. Working capital borrowings are
generally borrowings that are made under any revolving credit or
similar agreement used solely for working capital purposes or to
pay distributions to partners.
Available Cash is a quantitative measure used in
the publicly-traded partnership investment community to assist in
evaluating a partnership’s ability to make quarterly cash
distributions. Available cash is not required by accounting
principles generally accepted in the United States and should not
be considered a substitute for net income, cash flow from operating
activities and other operations or cash flow statement data
prepared in accordance with accounting principles generally
accepted in the United States or as a measure of profitability or
liquidity.
4. Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
Three Month Period Ended
March 31, 2017 ($ ‘000) (unaudited) |
Three Month Period Ended
March 31, 2016 ($ ‘000) (unaudited) |
|
Net cash
(used in)/ provided by operating activities |
$ |
(1,737 |
) |
$ |
23,531 |
|
|
Net
increase in operating assets |
|
9,591 |
|
|
2,047 |
|
|
Net
decrease/ (increase) in operating liabilities |
|
9,617 |
|
|
(4,299 |
) |
|
Net
interest cost |
|
9,832 |
|
|
7,592 |
|
|
Amortization and write-off of deferred financing cost |
|
(4,554 |
) |
|
(836 |
) |
|
Non cash
accrued interest income and amortization of deferred revenue |
|
3,085 |
|
|
— |
|
|
Equity
compensation expense |
|
(464 |
) |
|
— |
|
|
Non cash
accrued interest income from receivable from affiliates |
|
80 |
|
|
— |
|
|
Allowance
for doubtful accounts |
|
(1,495 |
) |
|
— |
|
|
Loss on
vessel disposal |
|
(1,260 |
) |
|
— |
|
|
Equity in
earnings of affiliates |
|
(41 |
) |
|
35 |
|
|
EBITDA(1) |
$ |
22,654 |
|
$ |
28,070 |
|
|
Allowance
for doubtful accounts |
|
1,495 |
|
|
— |
|
|
Loss on
vessel disposal |
|
1,260 |
|
|
— |
|
|
Equity
compensation expense |
|
464 |
|
|
— |
|
|
Adjusted EBITDA |
$ |
25,873 |
|
$ |
28,070 |
|
|
Cash
interest income |
|
101 |
|
|
4 |
|
|
Cash
interest paid |
|
(5,143 |
) |
|
(6,816 |
) |
|
Maintenance
and replacement capital expenditures |
|
(3,265 |
) |
|
(2,975 |
) |
|
Operating Surplus |
$ |
17,566 |
|
$ |
18,283 |
|
|
Cash
reserves |
|
(17,566 |
) |
|
(18,283 |
) |
|
Available cash for distribution |
$ |
— |
|
$ |
— |
|
|
(1)
|
|
|
|
|
|
Three Month Period Ended
March 31, 2017 ($ ‘000) (unaudited) |
Three Month Period Ended
March 31, 2016 ($ ‘000) (unaudited) |
Net cash
(used in)/ provided by operating activities |
$ |
(1,737 |
) |
$ |
23,531 |
|
Net cash
provided by/ (used in) investing activities |
$ |
98,045 |
|
$ |
(450 |
) |
Net cash
used in financing activities |
$ |
(2,019 |
) |
$ |
(16,454 |
) |
Contacts
Navios Maritime Partners L.P.
+1 (212) 906 8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
naviospartners@capitallink.com
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